Auto Parts Localization Could Save $2 Billion

Iranian auto industries can reduce capital flight by $2 billion, if the government were to support their localization efforts, secretary of Iranian Auto Parts Manufacturers Association says.
Arash Mohebbinejad added that bolstering domestic production can reduce the industries’ dependency on international supply chain, although the goal could only be attained with state support, ISNA reported.
He also said that thanks to localization plans, major carmaker Iran Khodro (IKCO) is expected to spend €153 million less on auto parts imports in the current fiscal year that ends in March 2021.
Mohebbinejad also noted that IKCO claims to have already curbed capital flight by €137 million in the first four months of the current Iranian year [started March 20].